There are generally two types of insurance that will or will not cover you in the event of water damage/flood.

Homeowners Insurance and Water Damage

 Although not mandatory, very few mortgage companies will finance a home owner without Home Owners Insurance in place.  This is the most common type of insurance in place and the first place to check to see if you are covered in the event of a water damage disaster.  Typically Peril Damage is covered by Home Owners Insurance this consists of wind/storm damage.  Events like a hole in the roof during a storm that leads to leaks.  If the storm damage is Hurricane related, there may be different deductibles.  See our article: What does water damage cost?for more information on that subject.  In general Home Owners Insurance is looking for non-maintenance related damage.

What is not covered by Home Owners Insurance – 

Leaky Pipes – If a pipe has leaked it is considered home maintenance and is not usually covered by Home Owners Insurance. Water Seepage through foundation– Over time your foundation may develop cracks that allow water to travel up through your floor and flood from below.  Although this may be caused by a storm it is typically not covered by home owners insurance.

 Flood Insurance

For Water Damage it’s no surprise that Flood Insurance has the best coverage.  If you are lucky (or smart) enough to have Flood Insurance.  The following things and the the problems they cause are covered by Flood Insurance.

  • The insured building and its foundation
  • Electrical and plumbing systems
  • Central air conditioning equipment, furnaces and water heaters
  • Refrigerators, cooking stoves and built-in appliances such as dishwashers
  • Permanently installed carpeting over unfinished flooring
  • Permanently installed paneling, wallboard, bookcases and cabinets
  • Window blinds
  • Detached garages (up to 10 percent of building property coverage); detached buildings (other than garages) require a separate building property policy
  • Debris removal

If there is any Personal Property that is damaged.  The following is also insured.

  • Personal belongings, such as clothing, furniture and electronic equipment
  • Curtains
  • Portable and window air conditioners
  • Portable microwave ovens and portable dishwashers
  • Carpets that are not included in building coverage
  • Clothing washers and dryers
  • Food freezers and the food in them
  • Certain valuable items such as original artwork and furs (up to $2,500)

The following list is not covered by Flood Insurance.  Similar to Home Owners Insurance, damage that is caused from a lack of maintenance is excluded.

  • Damage caused by moisture, mildew or mold that could have been avoided by the property owner
  • Currency, precious metals and valuable papers such as stock certificates
  • Property and belongings outside of an insured building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs and swimming pools
  • Living expenses such as temporary housing
  • Financial losses caused by business interruption or loss of use of insured property
  • Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy)

Your Insurance Policy will have specific information that may vary from the above general guidelines.  We recommend reviewing them before making any decisions.